Understanding Interchange

Since their establishment in the 1960s, open payment systems or, as they are often called, "four-party" payment systems, have delivered immense value to all constituents in the payments chain. These systems enable any bank, anywhere in the world, to link its customers (cardholders or merchants) with those of any other bank to transact business via payments cards, almost instantaneously.

Interchange is a small fee paid by a merchant's bank (also known as the acquiring bank) to the cardholder's bank (the issuing bank) to compensate the issuing bank for a portion of the risks and costs it incurs. Here, you'll find the resources you need to understand interchange and the role it plays in balancing costs in the system and promoting a strong, competitive payments industry.

What You Need to Know
Learn more about interchange and the benefits of the system it helps support: